Insurance hasn't taken any payments for past year - where do we stand?

[BlackNoSugar]

Our home insurance has been through the Post Office for the last few years, last year their renewal was reasonable so we decided to stay with them again. DH rang them to confirm we wanted to continue insurance with them, they were to take the premium in one lump sum from our bank account using his debit card, which he confirmed.

Insurance is due for renewal this month, and a couple of weeks ago we got a letter to phone them urgently. Apparently the payment for the past year's insurance was never taken - they got our authorisation to take the payment, but it was never sent to the bank. We had a lot of bills coming out around this time last year, and we didn't notice the payment hadn't been taken (we did double check, it was definitely not paid). DH said it was ok for them to take the payment now.

Today they rang again, they said the 'new' authorisation for payment has vanished from their system - they are checking with their IT department to find out what's happening, but the payment won't be taken this week as it was supposed to be.

Our insurance comes up for renewal in two weeks, which means we'll effectively have to come up with a double payment, which seems a bit unfair as it isn't entirely our fault (although we probably should have spotted the missed payment at the time).

They are ringing back later today.

I'm fairly sure it means you had no cover. It's the same with car insurance - if they don't take the payments the cover is cancelled, whether it's the insurance company's fault or not. Have you had a look in the policy documents?

I'd be tempted to change insurance companies.

If you had made a claim in the past year they would say you weren't covered and that it was your responsibility to check these things. In your shoes I'd tell them that they have left you uninsured over the past year and you are not paying for it now.

Go elsewhere for this year's cover.

the Post Office's IT system is out of the ark. This is ridiculous.

fortunately you have no claim! Raise a complaint with them, tell them you are not paying now for a service you didn't get, and get insurance from somewhere else quickly.

Still waiting for them to ring back - it should be within the hour.

change insurer anyway.
my file got lost behind the cabinet in the broker's office once, and I was uninsured (car).
If you had put in a claim, there is no way on earth they would ahve covered you.

Well we just rang the claims department to see if our policy is currently active (without giving them any of the details), and if we could make a claim today if we needed - it is active, and yes we could make a claim. So at least (as far as our mortgage company is concerned), we are covered. That was the main worry.

Still waiting for the adviser to ring back though. Unless they can give us a HUGE discount for next year, we're going elsewhere.

I would not pay them - do not authorise for this year, get new insurance todya for next year

As its their error they would be liable for any claims anyway.

I'd be inclined to ask for compensation towards the entire premium for stress caused etc. they certainly shouldn't earn a premium for this but you should pay for the underwriting.

If it is competitive is stay at renewal, if not move. Really it's their resolution that this should hinge on.

I'd point out how shocked you are by being potentially not covered and their poor service - and go elsewhere now without paying them a penny.

They'll say they would have covered you - but I bet if you had a large insurance request over the last year they would have wriggled out of it as you should have been aware the payment wasn't being taken.

If they say they are going to take it - inform your bank that it's out of date.

DH checked our bank account at COB last night and the amount was pending, so they have definitely managed to charge us. Which is fine, really, if we've had cover all year (there's no way for us to prove they wouldn't have covered us).

Will definitely be pushing for a hell of a discount on next year's insurance, otherwise we're off. I have to say, apart from this cock-up, their service is really good.

What service? only thing they needed to do in the lsat 12 months was take one payment from you, which they failed to do

They can't have it both ways. I would imagine if you had made a claim they would say you haven't paid and you're not covered. If they try to take it twice then it's a good time to change insurance companies.